The US State Department has ended an investigation into the accounts of the Iraqi National Congress (INC) which had blocked further funding of the organisation by Washington. Funds had been put on hold while the US waited for the opposition party to improve its accounting practices.

Four years ago Washington approved $97m (£61m) of funding for the opposition group but only a small fraction of the grant had been handed over when concerns about the bookkeeping emerged. The state department said no decision had been on the timing of providing the funds now the books were cleared.

The INC was one of six opposition groups recently invited to the state department to discuss the form of a new government for Iraq should Saddam be overthrown.